Vijay L. Bhambwani’s Ticker: Retail investors appear exhausted

News Snapshot:

Last week, I wrote about the near-term trends being dependent on institutional investors. Another factor that would curtail the participation of retail investors was the end of the financial year. That hypothesis played out along expected lines as headline indices slipped marginally in the truncated week. Last week I also wrote about the importance of monitoring marketwide position limits (MWPL) after the expiry of the February derivatives series. This indicator is a good way to determine the buying enthusiasm of deeper-pocketed players. MWPL levels indicate fatigue in the retail traders' camp. They are buying, albeit in far smaller quantities. More...